Article Summary, Automatically Generated By AI
About Optimism
Key Points
- Optimism (OP) is a layer-two blockchain on top of Ethereum.
- It benefits from Ethereum’s security and helps scale the Ethereum ecosystem using optimistic rollups.
- TVL: over $500 million.
- Home to 97 protocols, including Synthetix (SNX), Uniswap (UNI), and Velodrome (VELO).
Founders and Mission
- Led by the Optimism Foundation, a nonprofit organization.
- Aims to become a fully decentralized public good, not profit-oriented.
- Funded by donations and grants, promoting public goods growth
Embracing the Future: The Optimism Vision
Introducing Optimism (OP): A Revolutionary Blockchain Solution
Optimism (OP) is a layer-two blockchain that operates in tandem with Ethereum, leveraging the robust security of the Ethereum mainnet. By harnessing the power of optimistic rollups, Optimism plays a pivotal role in scaling the Ethereum ecosystem. This innovative approach enables trustless transaction recording on Optimism, with the added assurance of ultimate security provided by Ethereum.
Optimism, a prominent scaling solution for Ethereum, boasts an impressive total value locked (TVL) of over $500 million. This thriving ecosystem is home to 97 protocols, with notable inhabitants including Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a decentralized exchange (DEX), and Velodrome (VELO), an automated market maker (AMM). To embark on their Optimism journey, users can start by adding the chain to their Metamask and bridging tokens, such as ETH, to the Layer 2 (L2) network. Notably, on May 31, 2022, Optimism executed a highly anticipated airdrop of its OP token, marking a significant milestone in its development.
The Visionaries Behind Optimism: Meet the Founders
At the helm of Optimism is the Optimism Foundation, a nonprofit entity committed to nurturing the growth and development of the Optimism ecosystem. Drawing parallels with Ethereum, Optimism aspires to evolve into a fully decentralized public good, devoid of profit-driven motivations. Relying solely on donations and grants, Optimism is dedicated to creating infrastructure that fosters the growth and long-term sustainability of public goods.
Unveiling the Unparalleled Essence of Optimism
Optimism is founded upon four pillars of principle:
- Elegance of Simplicity
- Pragmatic Approach
- Enduring Sustainability
- Inspirational Optimism
Optimism strives to minimize complexity by leveraging proven Ethereum code and infrastructure whenever possible, thereby simplifying its own codebase and fostering seamless integration with existing frameworks.
The ecosystem is underscored by a pragmatic approach, shaped by the real-world necessities and constraints of its internal team and the users who interact with it. Consequently, Optimism adopts an iterative build approach, incrementally introducing features such as EVM equivalence.
Optimism’s design philosophy is rooted in the pursuit of long-term sustainability, eschewing shortcuts to scalability in favor of a more enduring approach. This is exemplified in its utilization of optimistic rollups, which leverage the consensus mechanism of Ethereum to achieve scalable growth. The process unfolds as follows: blocks are constructed and executed on the L2 (Optimism), while user transactions are aggregated and submitted to the L1 (Ethereum). Notably, the L2 operates without a mempool, ensuring that transactions are promptly accepted or rejected, thereby guaranteeing a seamless user experience while maintaining the security afforded by the Ethereum consensus mechanism.
On the Ethereum network, transactions are submitted without immediate validation and can be disputed for a specified timeframe (currently seven days). Following this period, the transaction is deemed irrevocable. Consequently, withdrawals from Optimism to Ethereum necessitate a seven-day processing period.
What Is the Circulating Supply of Optimism (OP) Coins?
Optimism envisions a thriving ecosystem where value is created and shared among its three core stakeholders:
- Token holders benefit from the strategic reallocation of sequencer revenue, yielding tangible value.
- Contributors and builders are rewarded through retroactive funding for public goods, fostering a sense of community and cooperation.
- Users and community members reap the benefits of ongoing airdrops and project incentives, driving engagement and participation.
In essence, the demand for OP block space fuels revenue, which is subsequently distributed to public goods, thereby catalyzing further demand for blockspace. Consequently, Optimism’s token allocation is structured as follows:
- The Ecosystem Fund, comprising 25% of the total, is allocated across four key areas: Governance Fund (5.4%), Partner Fund (5.4%), Seed Fund (5.4%), and Unallocated Funds (8.8%).
- Retroactive Public Goods Funding accounts for 20% of the total.
- User Airdrops, totaling 19%, are divided into an initial 5% airdrop, with subsequent airdrops to be announced in the future.
- The Core Contributors, who played a pivotal role in bringing the Optimism Collective from concept to reality, receive 19% of the total.
- Investors are allocated 17% of the total.
The inaugural token supply comprises 4,294,967,296 OP tokens, with an annual inflation rate of 2%. In the inaugural year, 30% of the initial token supply will be allocated to the Foundation for distribution purposes. Following the first year, token holders will exercise their voting power to determine the Foundation’s annual OP distribution budget. The Foundation anticipates seeking the following annual allocations:
- In the second year, 15% of the initial token supply will be allocated.
- In the third year, 10% of the initial token supply will be allocated.
- In the fourth year, 4% of the initial token supply will be allocated.
The Optimism Network’s Security Mechanisms: A Robust Framework
Optimism leverages the power of optimistic rollups, a technology that enables trustless recording of transactions on a second-layer blockchain. Periodically, the merkle roots of these transactions are broadcast to the first-layer blockchain, where they are verified by external validators. This process introduces a delay, typically of one week, before funds can be withdrawn from layer-two solutions operating on optimistic rollups.
Where to Acquire Optimism (OP): A Comprehensive Guide
OP is listed on prominent cryptocurrency exchanges, including Binance, Huobi, KuCoin, Gate.io, Bybit, and Coinbase, ensuring widespread accessibility and liquidity.
Associated Resources:
Discover Polygon (MATIC), a cutting-edge layer-two blockchain solution designed to elevate the Ethereum ecosystem.
Discover Avalanche (AVAX), a pioneering EVM-compatible layer-one blockchain that’s redefining the decentralized landscape.
Delve into our in-depth exploration of tokenization and the innovative solutions driving Ethereum’s scalability.
Stay ahead of the curve with the latest cryptocurrency news and expert trading insights, courtesy of CoinMarketCap Alexandria.